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DECISION

Approving the scheme on development of vietnam's banking sector up to 2010 and orientations toward 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

On the basis of the Communist Party of Vietnam Central Committee's notice No. 191-TB/TW of September 1, 2005, on the objectives of and solutions to development of Vietnam's banking sector up to 2010, and orientations toward 2020;

At the proposal of the Governor of the State Bank of Vietnam in Report No. 49/TTr-NHNN of February 9, 2006,

DECIDES:

Article 1.- To approve the Scheme on development of Vietnam's banking sector up to 2010 and orientations toward 2020, enclosed with this Decision.

Article 2.- The State Bank of Vietnam shall assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Planning and Investment, concerned ministries and branches, provincial/municipal People's Committees and credit institutions in, organizing the implementation of projects and schemes for achieving the objectives, orientations and solutions for development of Vietnam's banking sector enclosed with this Decision; guiding, inspecting, supervising and summing up the implementation every year for reporting to the Prime Minister; and organizing a preliminary review of the implementation by 2007 and a final review by 2010.

To assign the State Bank of Vietnam to assume the prime responsibility for, and coordinate with ministries and branches in, organizing the study and elaboration of the following important projects and schemes:

1. The Bill on the State Bank of Vietnam (new) to replace the 1997 Law on the State Bank of Vietnam and the 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam (to be submitted to the National Assembly in 2008).

2. The Bill on Credit Institutions (new) to replace the 1997 Law on Credit Institutions and the 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions (to be submitted to the National Assembly in 2008).

3. The Deposit Insurance Bill (to be submitted to the National Assembly after 2007).

4. The Law on Supervision of the Safety of Banking Activities (to be submitted to the National Assembly after 2007).

5. The Scheme on enhancement of the financial capacity (increasing equity capital, handling financial problems, mostly non-performing loans) of commercial banks according to international accounting standards and practices and the roadmap for equitization of state-owned commercial banks (to be submitted to the Prime Minister before June 30, 2006, for approval).

6. The Scheme on development of non-bank credit institutions and improvement of the effectiveness of their operation management (to be submitted to the Prime Minister before December 31, 2007, for approval).

7. The Scheme on development of other institutions engaged in banking activities and improvement of the effectiveness of their operation management (to be submitted to the Prime Minister before December 31, 2007, for approval).

8. The Scheme on development of non-cash payment in the 2006-2010 period, with a vision toward 2020 (to be submitted to the Prime Minister in 2006 for approval).

9. The Scheme on modernization of banks and payment systems, phase II, financed by the World Bank (to be implemented before December 31, 2007).

10. The Project on the system of information on management and modernization of banks, financed by the World Bank (to be submitted to the Prime Minister before June 30, 2007, for approval).

11. The Scheme on the roadmap for improving the convertibility of the Vietnamese currency, step by step overcoming the phenomenon of dolarization in the economy (to be submitted to the Prime Minister in 2006 for approval).

12. Formulation of the Scheme on propaganda for and development of small-scale financial activities and promotion of the role of small-scale financial activities in the cause of hunger eradication and poverty alleviation (to be submitted to the Prime Minister before December 31, 2007, for approval).

13. Formulation of a government decree providing for the supply of information in service of formulation and conduct of the national monetary policy (to be submitted to the Government in 2006 for approval).

To assign the General Department of Statistics to assume the prime responsibility for, and coordinate with the State Bank of Vietnam and concerned ministries and branches in, studying and formulating regulations on forms and mechanisms of disclosure of information on inflation (to be completed in 2006).

The State Bank of Vietnam shall, within the scope of their tasks and competence, proactively formulate and implement the said schemes and projects to realize the objectives, orientations and solutions laid down in the Scheme on development of Vietnam's banking sector up to 2010 and orientations toward 2020, enclosed herewith.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- The Governor of the State Bank of Vietnam, ministers, heads of ministerial-level agencies, heads of government-attached agencies, and presidents of provincial/municipal People's Committees shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI